HC Deb 21 April 1986 vol 96 cc40-1W
Mr. Austin Mitchell

asked the Minister of Agriculture, Fisheries and Food whether he will publish in the Official Report a table showing the effective incidence of the European Economic community levies on food prices on the same basis as given in his answer dated 31 March 1985, Official Report, column 391.

Mrs. Fenner

I assume the hon. Member is referring to the reply published in theOfficial Report dated 4 March 1985, columns 393–94. The information given in that reply is updated in the table. I remind the hon. Member that the "world" prices derived for the purpose of this calculation do not represent those which might obtain were more supplies purchased from non-Community sources.

United Kingdom levy as percentage of (a) the Intervention Price in the United Kingdom and (b) the "World Price"
Per cent.
2 July 1985 9 April 1986
(a) (b) (a) (b)
Beef and veal 71 175 66 133
Pigmeat 26 28 38 46
Poultrymeat 20 27
Eggs 25 37
Butter 75 208 84 281
Skimmed milk powder 68 155 85 296
Common wheat 68 70 82 142
Barley 55 67 77 155
Sugar 85 290 68 148

Notes

1. "Intervention prices" have been taken as:

  • Beef and veal—intervention price converted to carcase equivalent using 53.8 per cent. killing-out coefficient.
  • Pigmeat—lowest intervention price.
  • Butter—intervention price for 82 per cent. butter.
  • Skimmed milk powder—intervention price.
  • Common wheat and barley—intervention price.
  • Sugar—intervention price for white sugar plus storage levy.

There are no intervention prices for poultrymeat and eggs.

2. "World prices" have been calculated by subtracting the common levy in ECU from the threshold/guide price in ECU. The beef price is also adjusted for duty. In the case of pigmeat, poultrymeat and eggs the "world price" has been taken as the sluicegate price less supplementary

Levy and Monetary Compensatory Amount Applicable in the United Kingdom, Threshold Price and Notional "World Price" on 9 April 1986 for the Main Food Items covered by the Common Agricultural Policy.
£ tonne
Commodity Levy applicable in the United Kingdom* Of which monetary compensatory amount Threshold or equivalent price† Notional world price‡
Common wheat 101 -7 167 71
Barley 96 -7 154 62
Maize 88 -7 154 69
Rice 407 n/a 516 118
Sugar (white) ║251 -24 414 169
Olive oil 473 n/a 1,285 881
Butter ¶1,624 -128 2,172 577
Skimmed milk powder 915 -71 1,210 309
Beef and veal •1,398 -122 2,358 1,049
Pigmeat 371 -31 1,258 810
Sheepmeat ■— n/a 3,056 1,700
Poultrymeat 201 -16 880 734
Eggs 221 -19 779 602

Notes

n/a=not applicable.

All figures have been rounded to the nearest £.

* The rates of levy vary for different tariff headings. The rates quoted are: beef and veal—carcase; pigmeat—carcase; poultrymeat—70 per cent, chickens; rice—wholly milled long grain; olive oil—virgin; eggs in shell. Levies are shown after deduction of the monetary compensatory amount where applicable.

† For commodities for which there is no threshold price the following have been taken: beef and veal—guide price converted to deadweight (using a killing out percentage of 53.8 per cent.): pigmeat and sheepmeat—Basic price; pultrymeat and eggs—sluicegate prices plus basic levy; converted at the green rate of exchange.

‡ Notional "world" prices have been calculated by subtracting the levy applicable on 9 April from the "threshold" price. The beef price is also adjusted for duty. In the case of pigmeat, poultrymeat and eggs, the "world" price has been taken as the sluicegate price, less supplementary levy where appropriate. The resulting estimate has been converted from ECU/t at the appropriate market rate of exchange £0.671974=1 ECU.

║ In practice the United Kingdom's imports from third countries are normally covered by the Lomé convention and enter the Community levy free.

¶ A special lower rate of levy is applicable to imports of butter from New Zealand.

• Most imports of beef from third countries are subject to special arrangements allowing entry at reduced levy rates.

■ Imports of lamb under voluntary restraint arrangements with principal suppliers and related agreements are subject to a reduced charge of 10 per cent. ad valorem. Any imports outside these arrangements are subject to levies which cannot exceed the 20 per cent. tariff bound in the GATT.